BusinessEconomyNewsNigeriaFestive Season Drives Inflation to 34.80% in December

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Nigeria’s inflation rate increased for the fourth consecutive month, reaching 34.80 per cent in December 2024, compared to 34.60 per cent recorded in November.

This was disclosed by the National Bureau of Statistics (NBS) in its latest report released on Wednesday.

The NBS attributed the rise to heightened demand during the festive season, with food and non-alcoholic beverages being the key contributors to the surge.

Despite the rise in overall inflation, food inflation slightly eased to 39.84 per cent in December from 39.93 per cent in November, reflecting price increases in essential items such as yam, sweet potatoes, beer, corn, rice, and fish.

The inflationary trend intensified following President Bola Tinubu’s 2023 economic reforms, which included the devaluation of the naira and petrol subsidy removal to stimulate economic growth.

While inflation began to ease mid-2024 as the effects of the naira devaluation waned, subsequent petrol price hikes reignited inflationary pressures, exacerbating Nigeria’s worst cost-of-living crisis in decades.

To combat the inflationary trend, the Central Bank of Nigeria raised interest rates six times in 2024 yet it still persists.

Meanwhile, President Tinubu, in his December budget speech, expressed optimism that inflation would drop to 15 per cent in 2025, supported by reduced imports of petroleum products.

By Ezinwanne Onwuka (Senior Reporter)

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